Jira & Confluence 
Bitrix24 Severance · notice · annual leave · Proclamation 1156/2019
Severance pay calculator Ethiopia — what your employer owes you, article by article
Short answer. Enter your monthly wage, years of service and why the job ended: you see severance, the extra payment for your reason, notice pay and unused leave — and a letter asking for payment within seven working days. Who gets severance: after probation, in the cases of art. 39: closure, reduction, unlawful dismissal, harassment or abuse, disability, or leaving after 5+ years (Proclamation 1156/2019, art. 39).
- Payment is due within 7 working days (art. 36) — check about 9 days aftertype the date
- Ask for your certificate of employment — the same daytype the date
Check your own case.
Seven working days under art. 36; the 9 calendar days are only a reminder.
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Severance and final settlement
What your employer owes you — severance, the extra for your reason, notice and leave
Your monthly wage, years and months of service, why the job ended and unused leave. You see each payment with its article and the total, and download the calculation with a letter asking for payment within seven working days.
- Send the letter with the calculation: the employer must pay within seven working days (art. 36).
- If the employer disputes an item, it must still pay the amount it accepts (art. 37); keep copies of everything.
- For a dispute, go to the labour office (conciliation) or the labour division of the court.
Arithmetic from Labour Proclamation No. 1156/2019: severance 30 days' wage for the first year (less than a year — in proportion) + 1/3 of that for each further completed year, max 12 months' wage (art. 40); + 60 days for closure or reduction (art. 40(3)); + 30 or 90 days when leaving under art. 32(1) (art. 41); court compensation 180 days + notice wages (art. 43(4)(a)); notice 1/2/3 months (art. 35). Daily wage = monthly ÷ 30. Resignation under 5 years: no severance. Tax not calculated. Not legal advice.
Lida, Layers template assistant
Tell me your wage, years of service and why the job ended, and I'll work out what you're owed.
The letter below asks your employer to pay within seven working days.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| Who gets severance | After probation, in the cases of art. 39: closure, reduction, unlawful dismissal, harassment or abuse, disability, or leaving after 5+ years | Proclamation 1156/2019, art. 39 |
| Amount | 30 days' average wage for the first year (less than a year — in proportion), + 1/3 of that for each additional year; max 12 months' wage | art. 40(1)–(2) |
| Closure or reduction | + 60 days' wage | art. 40(3) |
| Leaving without notice | + 30 days (abuse, danger); + 90 days after sexual harassment or violence | art. 32(1), 41 |
| Unlawful dismissal | Court may order 180 days' wage + wages for the notice period | art. 43(4)(a) |
| Notice by employer | 1 month up to 1 year · 2 months 1–9 years · 3 months over 9 · 2 months for reduction | art. 35, 44 |
| Payment | Within 7 working days; unused annual leave is paid too | art. 36, 77(5) |
Federal law for private-sector employees. Civil servants are under a different law. The daily wage is taken as monthly wage ÷ 30.
Step by step
What to do, in order
1
Enter wage and service
Last monthly wage without overtime or allowances, full years and months of service.
2
Choose why the job ended
The calculator adds the right extra days and notice pay.
3
Send the letter
The Word file has the calculation and a letter asking for payment within 7 working days.
Questions
How is severance pay calculated in Ethiopia?
Under Article 40 of Proclamation 1156/2019: 30 days of your average daily wage for the first year, plus one third of that (10 days) for each additional year, up to twelve months' wage. With Br 18,000 a month and 6 years: 18,000 + 5 × 6,000 = Br 48,000.
Do I get severance if I resign?
Not normally. But Article 39 gives severance to a worker with at least five years of service who resigns (with no training bond), and to a worker who leaves because of harassment, abuse or a threat to safety the employer ignored.
What extra do I get for redundancy?
When the undertaking closes or you are reduced, Article 40(3) adds 60 days' wage on top of severance. If the employer didn't give the notice (2 months for reduction), it owes wages in lieu of notice.
When must the employer pay?
Within seven working days of termination (Article 36). If you dispute the amount, the employer must still pay what it accepts within that time (Article 37).
Is it free? Do I need to sign up?
It's free and you don't need an account: fill it in and download. With a free account you can save a copy to your Layers and come back to it later.
Official sources
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
A calculation and a letter template from the text of the Proclamation, not legal advice. A labour court or labour office decides disputes.